"California Carbon Market On Ice"

"A California judge has suspended the implementation of an emissions cap-and-trade scheme till air regulators can examine alternatives, dealing another setback to an ambitious program that could serve as a model for other states.

San Francisco Superior Court Judge Ernest Goldsmith ruled that the California Air Resources Board (ARB) should "take no action" to implement cap-and-trade plans until it analyzes other greenhouse gas reduction policy options.

The scheme is designed to help meet aggressive greenhouse gas reduction targets. But last month, Judge Goldsmith said the ARB, which crafted the state's cap-and-trade scheme, failed to adequately study alternatives to creating a carbon market."

Valerie Volcovici reports for Reuters May 24, 2011.